May 16 2024: Canada Goose Holdings Inc. (NYSE:GOOS) saw its shares jump by 7.3% after reporting impressive first-quarter earnings that exceeded expectations on both earnings and revenue.
The luxury outerwear company posted adjusted earnings per share (EPS) of Cdn$0.19, significantly higher than the analyst estimate of Cdn$0.05. Revenue also surpassed projections, coming in at Cdn$358 million compared to the expected Cdn$233.48 million.
This strong performance reflects the company’s effective strategic initiatives and operational discipline amidst high interest rates and geopolitical uncertainties. The quarter’s total revenue showed a 22% increase from the same period last year, highlighting robust growth.
Chairman and CEO Dani Reiss attributed the success to the brand’s iconic status and disciplined strategy execution. He noted that expanding the retail presence, diversifying product categories, and streamlining operations were key factors in the positive results.
Looking forward, Canada Goose provided its fiscal 2025 annual guidance, predicting low-single-digit year-over-year total revenue growth. Direct-to-consumer (DTC) comparable sales are expected to grow in the low-single-digits, with additional revenue from new stores and shop-in-shops. Despite an anticipated 20% decline in wholesale revenue, the company expects a mid-single-digit percentage increase in pricing over fiscal 2024.
The company also forecasts a consolidated gross margin percentage similar to fiscal 2024 and an approximate 100 basis point expansion in non-IFRS adjusted EBIT margin. Adjusted net income per diluted share is projected to grow by a mid-teen percentage year-over-year.
Investors responded positively to the earnings beat and the optimistic outlook for fiscal 2025, driving a significant rise in the stock price. This reaction underscores confidence in Canada Goose’s ability to navigate economic challenges and maintain strong financial performance.
